The factor of location can be observed in two ways – the place of your residence and the state where you live.
Speaking of the first point, insurance companies need to know whether you live in the city or in the suburbs – and that’s how they form the price. If it takes you about two hours to arrive at your workplace, get ready to pay more for the policy – the more time you spend on the road, the higher chance to get involved in the accident.
The insurance premium is differently priced in almost every state. Have a look at the four factors that influence it
• Weather conditions:
if you live in a coastal country, there is a risk of hurricanes, and if you live in some desert place, you might experience cracked windshields caused by falling rocks – the insurance policy is expensive in both cases.
• Population density:
if you are in a crowded state, you must deal with heavy traffic – so, there is more chance of getting into the car accident. Again, prepare yourself for a higher price.
• Crime rates:
the bigger the state, the higher the crime rate. If your state deals with vandalism or thefts, the insurance companies tend to increase the pricing.
• Dangerous intersections:
big states are famous for busy intersections and developed way stops. However, that brings more risk for the drivers, and that's another reason for the high cost.
According to this, Minnesota
would be one of the most affordable
states with average car insurance cost of $137 per month
. On the other hand, states like Rhode Island
and New York
would be the most high-cost countries
at $232 for the monthly premium
. Speaking of medium-cost places, Alaska
would be an example, with average monthly car insurance fee of $167
All in all, it’s not that common that people move to the other country because of the car insurance price. Again, keep your driving record clean – it will lower your cost a bit.